Huge Savings on Interest: Available to Anyone

There's a trick to significantly reduce the length of your mortgage and save thousands over the course of your loan: Make extra payments which are applied to the loan principal. You pay more on principal in many different ways. Paying a single additional full payment once per year is likely the easiest to track. If you can't pay an additional whole payment all at once, you can split that large amount into 12 smaller payments and write a check for that additional amount monthly. Finally, you can pay half of your mortgage payment every other week. These options differ a little in lowering the total interest paid and reducing payback length, but they will all significantly reduce the length of your mortgage and lower the total interest you will pay over the life of the loan.

Additional One-time payment

Some people can't manage any extra payments. Keep in mind that virtually all mortgages will permit you to make additional payments to your principal at any point during repayment. Whenever you come into unexpected money, consider using this provision to pay an additional one-time payment toward principal. If, for example, you receive a surprise windfall three years into your mortgage, investing several thousand dollars into your mortgage principal will significantly shorten the period of your loan and save a huge amount on mortgage interest paid over the duration of the mortgage loan. For most loans, even this modest amount, paid early in the mortgage, could offer huge savings in interest and in the length of the loan.

Moonstar Mortgage can walk you At Moonstar Mortgage, we answer questions about interest-saving strategies almost every day. Give us a call: 847-278-7220.

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